Inventory & Safety Stock Calculator

Calculate safety stock, reorder point, turnover days and suggested purchase quantity — and see how holding cost eats into your product profit. Supports Amazon FBA / Shopify modes. All local.

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Results

Safety Stock (Units)
Reorder Point (Units)
Suggested Purchase Qty (Units)
Inventory Turnover (Days)
Inventory Turnover (Times/Year)
Capital Tied Up ($)
Annual Holding Cost ($)
Holding Cost / Gross Profit (%)

Revenue Breakdown

Chart will render here (IDE)

Scenario Simulation

See how lead time / sales changes affect safety stock (logic to be implemented by IDE).

Scenario results will be shown here.

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What Is Safety Stock?

Safety stock is extra inventory kept to cover demand spikes and supplier delays. Without it, you stock out and lose sales; with too much, you tie up cash and pay holding costs.

Simple vs Statistical Safety Stock

Simple mode: (max daily sales − avg daily sales) × max lead time. Statistical mode uses sales standard deviation and a service level (Z-score) for greater accuracy when you have historical data.

Reorder Point & Suggested Purchase

Reorder point = (avg daily sales × avg lead time) + safety stock. When inventory hits this level, reorder. Suggested purchase adjusts for on-hand and in-transit stock to avoid double-ordering.

Inventory Holding Cost Eats Profit

Holding inventory costs 20–30% of product value per year (capital, storage, insurance, obsolescence). This calculator links holding cost to your gross profit so you see the real cost of overstocking — something most calculators miss.

Amazon FBA Inventory Notes

FBA sellers face long-term storage fees and IPI (Inventory Performance Index) pressure. Keep turnover healthy and avoid slow-moving stock.

Frequently Asked Questions

What is the difference between safety stock and reorder point?
Safety stock is the buffer. Reorder point is the inventory level that triggers a new order: (avg daily sales × lead time) + safety stock.
What is a good service level?
95% is common for e-commerce (Z=1.65). Higher levels reduce stockouts but increase holding cost.
Does this work for Amazon FBA and Shopify?
Yes. Toggle the mode — FBA sellers should watch long-term storage fees; Shopify sellers use own/3PL warehouse logic.
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